Indian Premier League is a story of phenomenal growth – year on year, cycle on cycle. Every time an IPL property has gone under the hammer, the records and projections have tumbled in the better interest of India’s and cricket world’s most precious league. The gains over the ten years have been multiple for each stakeholder – from the league owners Board of Control for Cricket in India to the franchisees to the players.
Another monetary boost is on the cards for players, who will go under the hammer at the IPL players auction for an all-new 2018 season. The franchisee, a majority of them, are in favour of raising the players acquisition purse from the INR 66 crore for the 2014-2017 cycle to INR 75-80 crore. This will be a significant 200% gain in the IPL money pool earmarked for the players.
However, a 200% growth in multi-crore deal becomes insignificant when compared with the other monetary aspects of the league. The owners happen to be the most important constituents of the league, the franchisees or team owners’ revenue share from the IPL central pool is projected to reach up to INR 275 crore per annum, which may also see an end to majority of the franchisees’ struggle to break even.
The best growth has been registered in the two revenue streams for the Indian Premier League – the property, which has seen an unbelievable growth in the title sponsorship and media rights values. The IPL title sponsorship rights, which the soft drink brand Pepsi had acquired for INR 200 crore for the first five years, has been bought by Chinese mobile phone brand Vivo with an INR 2,200 crore bid for the 2018-2022 five-year cycle – resulting in an 1,100% growth over a period of ten years.
Media and broadcast rights’ switch from Sony to Star has come at a price escalation of 400%.
An INR 80-crore purse for the acquisition of 20-odd talent looks a fortune for the players. However, a comparative study of the IPL revenue growth establish players as the one happy community that has gained the least.